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What Happens When Proxy Advisors Say No To Executive Compensation?

Executive Summary Institutional Shareholder Services (ISS) recommendations have more influence on Say on Pay votes than Glass Lewis (GL)  ISS and GL provide consistent recommendations for Say on Pay (either both For or both Against) 88 percent of the time for companies in the S&P 500. This pattern is similar…

Read More > 02.18.2022

Briefs

Interview: Powering Business Away From Climate Risk

Recently, Farient Partner Dayna Harris had a chance to participate on a National Association of Corporate Directors’ (NACD) Climate Risk panel with Britt Ide. Britt is on the boards of NorthWestern Energy.

Read More > 12.07.2021

Briefs

Shareholder - Executive Pay in the Pandemic Year

Beyond the Headlines – Executive Pay in the Pandemic Year

Executive Summary 2020 was a strong year for investors, following very robust equity returns in 2019 Compensation decisions are made early in the fiscal year. For 2020 this meant compensation decisions were made prior to understanding the impact of COVID-19 Because short-term incentive (STI) plans are awarded for past performance,…

Read More > 11.16.2021

Briefs

Board Oversight of Stakeholder Strategies

By: RJ Bannister, Partner, Farient Advisors Companies around the world are including “stakeholder” considerations in their strategy and culture. Today’s stakeholders expand beyond investors, and regulators, and include customer and community interests, suppliers and employees. As stakeholder prominence becomes commonplace, every company should consider two fundamental questions: (1) what is…

Read More > 03.30.2021

Briefs

Interview: Robin Ferracone and Bob Zukis Talk Systemic Risk and Stakeholders

In an interview, Robin Ferracone and Bob Zukis discuss systemic risk and stakeholders.

Read More > 03.03.2021

Briefs

In the Year of the Stakeholder: Getting Skin in the Game

I am convinced that focusing on stakeholder wellbeing and creating a level of accountability through incentives will have long-term benefits for everyone. As we focus on doing right by stakeholders, we can all help maintain a healthy economy, expand opportunities and protect our planet.

Read More > 02.17.2021

Briefs

Use of Diversity, Equity & Inclusion (DE&I) Metrics in the S&P 500

When Diversity, Equity, and Inclusion (DEI) is used as an incentive measure, it is most often part of a weighted scorecard or a weighted measure up to approximately 20% of STI

Read More > 02.02.2021

Briefs

Executive Compensation 2021: Back to the Future

Welcome to 2021. The first two weeks of January have certainly foreshadowed an eventful year to come. To ring in the New Year, Farient and our partners in the Global Governance and Executive Compensation Group (GECN Group) just published our newest research entitled 2021 and Beyond: Global Trends in Stakeholder Incentives.

Read More > 01.13.2021

Briefs

The Evolving Role of the Compensation Committee: It’s More than Pay

By Robin Ferracone and Dayna Harris No one will argue that 2020 has been an extraordinary year. From multiple months of COVID-19, the killing of George Floyd in Minneapolis, Breonna Taylor in Louisville, Ahmaud Arbery in South Georgia, among others, human capital management and most notably diversity, inclusion, and equitable…

Read More > 11.23.2020

Briefs

black and white angled shot of the interior of a piano, showing the strings of the piano, pay

Directorship Magazine: The Most Important Dimension of Alignment – Why Share Ownership Matters as Much as Pay

If you look up Sheldon Adelson’s pay in the Las Vegas Sands Corp. proxy statement, you would see that he makes about $25 million per year as chair and CEO. About half of that sum is nominally at risk in his incentive plan. Today’s S&P 500 CEOs typically have about 80 percent to 90 percent of their annual pay at risk. So, Adelson’s pay appears to be only modestly aligned with his performance. And yet he sees his personal net worth from company shares fluctuating on average by more than $1 billion per week.

Read More > 09.16.2020

Briefs

Companies Cut Executive Pay in Changing COVID-19 Landscape

Throughout May, Farient has continued to keep a close eye on compensation trends, particularly as to what actions, if any, S&P 500 companies are taking in regard to their compensation plans as a result of COVID-19. In this brief, we update the overall trends and dive deeper into two examples of companies that have made decisions that are outside of the mainstream, MGM Resorts and Automatic Data Processing, Inc.

Read More > 06.11.2020

Briefs

The Optics of Executive Pay in the Time of COVID -19

In mid-March, Farient began tracking companies making adjustments to their pay programs in response to the economic fallout of the virus.

Read More > 05.04.2020

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